Making sense (and, sometimes, nonsense) out of Current News, Issues, Politics

Monday, November 21, 2016

What Gold & Silver are Saying About the Trump Election

Gold and silver are supposed to be safe-haven investments in times of trouble. So, it's interesting that since Trump was elected, the prices of these two metals have fallen like rocks. Just look at the price of silver from the Goldline website:

Then, there's this chart for gold:

Back in July, a senior writer for MarketWatch, William Watts, predicted that if Trump should win, gold would rise to $1850 an ounce. Implying that Trump's policies would weaken the U.S. economy. Really? In fact, the U.S. dollar has hit 13-year highs since Trump won the highest office in the land. A signal that traders are betting that Trump polices would make (you know) America great again. Along with the rise in the dollar, the stock market has also been on a tear; setting record highs. But that same writer for MarketWatch still can't believe Trump might do good things. Just last Friday, he wrote a another opinion piece titled: "Stop calling stock-market rise a ‘Trump rally’".

In my opinion, any time William Watts at MarketWatch makes a prediction, a wise investor should do the opposite. Apparently, he puts his political leanings before any rational and common business sense.